Keeping money safe

The different layers of protection for your money (Germany/EU):

1. Bank deposits (current account, overnight money, fixed-term deposits):

• Statutory deposit protection: €100,000 per bank and customer
• With an EU bank: repayment within 7 working days if the bank fails
• Many German banks: additional voluntary protection (up to millions)

2. Securities account (shares, ETFs, funds):

• Segregated assets: fully protected, NO upper limit
• Broker goes bust? Your securities account is transferred to another bank
• Safer than bank deposits above €100,000!

3. Cash at home:

• No protection against theft or fire (unless covered by household contents insurance, limited)
• Safe: from €100 for simple models, good ones from €500
• Max. €500–2,000 at home makes sense (for emergencies)

4. Physical gold:

• Safe deposit box: €50–200/year (not covered by deposit protection!)
• Home safe: fire and burglary protection are important

Recommendation: up to €100,000: overnight money + ETF account. Over €100,000: spread across several banks or (better) invest in ETFs (segregated assets = unlimited protection).